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Hudson’s Bay Company, disclosing financial results for the first time since going public last month, reported a $2 million net loss for the third quarter ended Oct. 27, compared to a net profit of $1.26 billion in the year ago quarter.
The difference in the net primarily reflects HBC’s sale of Zellers leases to Target last year for $1.84 billion and $60 million in expenses from the deal. On a continuing basis, earnings in the quarter came to $800,000 compared to a $5 million loss in the year ago period. Figures are stated in Canadian dollars which are practically on par with U.S. dollars. HBC began trading on the Toronto Stock Exchange on Nov. 25.
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The company also warned that Hurricane Sandy cost Lord & Taylor $20 million in sales and would impact fourth quarter results. But in the third quarter, both Hudson’s Bay and Lord & Taylor performed well, with same store sales ahead 4.5 percent at Hudson’s Bay and 5.2 percent at Lord & Taylor, primarily driven by stronger storewide promotions in October. Consolidated same store sales, which increased 3.5 percent compared to the prior period, were negatively impacted by foreign exchange rate movements and lower sales at the Home Outfitters unit of Hudson’s Bay.